TNAG-0763-FCO40-967-Effect-of-GATT-Multi-Fibre-Arrangement-(MFA)-on-Hong-Kong-ex-1978 — Page 206

TEXTILES.

SUMMARY.

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1. IN RESPONSE TO PRESSURE FROM THE UK, FRANCE AND ITALY, THE COMMISSION CONFIRMED THAT THEY WILL SHORTLY ISSUE A COMMISSION REGULATION IMPOSING RESTRAINTS ON GREEK EXPORTS WHICH HAVE ALREADY EXCEEDED AGREED CEILINGS: AND WILL THEREAFTER MAKE A PROPOSAL TO THE COUNCIL FOR SIMILAR ACTION ON THE REMAINING GREEK TEXTILE PRODUCTS. MR DELL SAID THAT OUR RESERVE ON PORTUGAL WOULD REMAIN

UNTIL OTHER OUTSTANDING MEDITERRANEAN PROBLEMS HAS BEEN SOLVED:

BUT THAT THE LATEST DEVELOPMENTS WERE ENCOURAGING,

DETAILS.

2 THE SECRETARY OF STATE FOR TRADE SAID THAT IN ACCEPTING THE

PACKAGE FOR THE RENEWAL OF THE MFA LAST DECEMBER, WE HAD BEEN UNEASY

ABOUT THE ARRANGEMENTS WITH THE MEDITERRANEAN SUPPLIERS. THE

ASSURANCES GIVEN TO THE COUNCIL IN DECEMBER WERE IMPORTANT. WE WERE PARTICULARLY CONCERNED OVER THE PROBLEMS THAT HAD ARISEN WITH GREECE.

ACTION WAS OVERDUE, HE REGRETTED THAT THE COMMISSION'S ACTION ON

PRODUCTS WHERE THE CEILINGS HAD ALREADY BEEN BREACHED HAD BEEN HELD UP BY A NUMBER OF RESERVATIONS. WE HOPED THAT ALL MEMBER STATES WOULD SUPPORT THE COMMISSION ON THIS. SECOND, FORMAL COMMISSION PROPOSALS WERE NOW NEEDED FOR THE IMPOSITION OF UNILATERAL RESTRAINS AGAINST THE REMAINING GREEK PRODUCTS AT THE DECEMBER LEVELS. IF THE

COMMUNITY PROVED UNWILLING TO DEAL DECISIVELY WITH THIS CASE, IT COULD NOT EXPECT OTHER PREFERENTIAL EXPORTERS EG TURKEY

TO ABIDE BY THEIR VOLUNTARY UNDERTAKINGS.

3 ON SPAIN MR DELL SAID THAT WE HAD BEEN GLAD TO HAVE THE COMMISS- ION'S REASSURANCE THAT THEY WOULD IMPLEMENT THE CONCLUSIONS OF THE 2 DECEMBER COUNCIL. IF A BETTER ARRANGEMENT WITH THE SPANIARDS OULD NOT BE NEGOTIATED SOON, SAFEGUARD ACTION WOULD BECOME INEVITABLE.

4e ON PORTUGAL, WE HAD HAD PARTICULAR DIFFICULTIES WITH THE COMMISSION'S AD REFERENDUM AGREEMENT. WE HAD HAD DISCUSSIONS WITH THE COMMISSION. THE LATEST INFORMATION (CF. MIFT) LEAD US TO FEEL ENCOURAGED. BUT A DECISION TO LIFT CUR RESERVE WOULD HAVE TO BE SET IN THE WIDER CONTEXT OF A SATISFACTORY SOLUTION TO THE OTHER OUTSTANDING MEDITERRANEAN PROBLEMS.

5. MR DELL CONCLUDED BY OBSERVING THAT SOME MEANS WOULD HAVE TO BE FOUND QUICKLY OF APPLYING TO THE PREFERENTIAL COUNTRIES THE 'EXIT FROM THE BASKET: MECHANISM BULCH ABPILED TO OTHER MEA SURDUL280